New York Community Bancorp and NCRC pledge $28 billion to communities
The commitment will serve people of color, low- and moderate- income (LMI) families and communities, and small businesses
- Written by Banking Exchange staff
New York Community Bancorp and the National Community Reinvestment Coalition (NCRC) have provided $28 billion in loans, investments and other financial support to majority-minority communities.
The commitment will serve people of color, low- and moderate- income (LMI) families and communities, and small businesses.
The company’s Community Pledge Agreement was developed with the NCRC as part of its pending merger with Flagstar Bancorp.
The agreement includes $22 billion in community lending and affordable housing commitments, and $6 billion of residential mortgage originations to underserved and LMI borrowers in majority-minority neighborhoods over a five-year period.
"Over the past several months, members of both NYCB's and Flagstar's leadership teams have met with NCRC and nearly 80 of its member organizations and were humbled by everything they do for their communities," said Thomas R. Cangemi, chairman, president, and CEO of New York Community Bancorp, Inc.
"This multi-year agreement reflects our commitment to provide greater economic opportunities for LMI communities and communities of color in both of our market areas and bridge the racial wealth gap that exists today."
Sandro DiNello, president and CEO of Flagstar Bancorp, added: "Flagstar goes into this agreement with the momentum of an outstanding CRA rating and a long history of investing in underserved communities. This is a far-reaching, substantial agreement that aims to move the needle on closing the racial wealth gap and bringing expanded CRA initiatives to the broader footprint of our pending new company. We thank the leadership of NCRC and its members for their hard work in bringing this agreement to fruition."
The Agreement addresses several important areas of need within communities that were identified during its meetings with NCRC and its member organizations.
NYCB has pledged to originate $5.7 billion of loans for home purchases, refinances, home improvement, and home equity loans to underserved and LMI borrowers and in majority-minority communities.
The company will also provide loan products or participate in affordable housing programs which address the specific needs of LMI borrowers and create a $10 million down payment assistance fund to support home ownership for LMI borrowers.
It is also committed to promoting fair and responsible multi-family lending practices for all multi-family loans within its portfolio.
NYCB will provide $542 million in loans to small businesses with less than $1 million in revenues and in LMI and majority-minority communities and it intends to invest $21.7 billion in community development loans and investments, including those that address the needs of LMI communities and individuals and New Markets Tax Credit and Low Income Housing Credit projects.
As a result of the merger with Flagstar, NYCB does not plan to close any branches, including branches in LMI or majority-minority communities.
In addition, the Bank will seek to maintain a diverse and inclusive workforce, which reflects the demographics of the communities it serves and will endeavor to maintain its practice of staffing branches by individuals who live in the same communities and who are conversant in the language spoken in their communities.
Tagged under Impact Exchange, Socially Responsible Investing, SRI, Diversity, Inclusion, Human Rights, Small Business,
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